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Kinbasha Gaming International, Inc. Releases Letter to Shareholders From CEO Masatoshi Takahama
Update From CEO Highlights Kinbasha's Achievements Over the Past Year and Provides Insight Into Upcoming Initiatives in 2013

HITACHI, JAPAN -- (Marketwire) -- 01/22/13 -- Kinbasha Gaming International, Inc. (OTCQB: KNBA), owner and operator of retail pachinko gaming centers nationally in Japan, today released a letter to shareholders from Masatoshi Takahama, Chief Executive Officer, providing investors with corporate highlights of 2012 and management's vision for the company in 2013.

Dear Shareholders:

As Chief Executive Officer of Kinbasha Gaming International, it is my extreme pleasure to speak with you today and bring you details of our corporate growth initiatives and discuss our plans for the future. Our intent is to regularly inform current and potential investors of our progress as Kinbasha capitalizes on the enormous opportunities in Japan's retail gaming space, which is a $227 billion gaming industry and ranked as the country's largest leisure activity.

If you've been following our company, you will certainly appreciate how much we have achieved in the past year. We completed the audits of our financial statements for fiscal 2010, 2011 and 2012 and became a reporting company with the SEC. As a result, the trading of our common stock has moved from the "pink sheets" to the OTCQB.

In the past quarter, we engaged Brean Capital, LLC, a leading New York-based investment banking, securities and investment management firm, to provide strategic corporate finance and investment banking services. This is a major achievement as we begin to utilize Brean Capital's expertise to assist us in our expansion strategies and raising capital in the United States.

In addition to its investment banking services, Brean has agreed to act as Kinbasha's Designated Advisor for Disclosure ("DAD") for enabling the Company to join the OTCQX, the highest marketplace financial platform operated by OTC Markets, Inc. The OTCQX is designed to offer investors transparent trading, superior information and easy access through US registered broker dealers as compared to other over the counter markets.

Needless to say, we are thrilled to have achieved these milestones and we look forward to continuing our momentum in 2013.

Major Highlights of 2012

  • Achieved the full recovery of our 21 gaming parlors with the re-launch of operations that were badly damaged in the massive earthquake and tsunami of March 2011.

  • Became a fully reporting public company with the SEC.

  • Uplisted trading in our common stock from the "pink sheets" to the OTCQB.

  • Engaged New York-based Brean Capital, LLC to provide strategic corporate finance and investment banking services.

  • Brean Capital's initial investment banking services will be in connection with Kinbasha's plan to acquire and/or develop new retail gaming locations in Japan.

  • Brean Capital has also agreed to act as Kinbasha's Designated Advisor for Disclosure ("DAD") in connection with our application to join the OTCQX.

Strategic Vision for 2013

  • Uplist from the OTCQB to the OTCQX with Brean acting as Kinbasha's DAD. The OTCQX listing is expected to provide enhanced liquidity for our shareholders.

  • Raise capital in the U.S. markets to build new gaming centers and expand our operations in Japan.

  • Leverage Kinbasha's strong brand to organically grow our existing operations and significantly increase revenues while continuing to streamline expenses.

  • Increase visibility in the US markets and enhance our communication with shareholders and the investment community at large.

As we move into 2013, we look forward to continuing this string of positive news and business updates while simultaneously improving our financial position. We anticipate that our top-line revenue in 2013 will continue to build on our progress in 2012 due to our organic growth and consumer demand at our gaming centers and establishments. As we continue to realize new operational milestones, we remain highly focused on improving our financial metrics, with an unequivocal commitment to building shareholder value.

I thank you for your attention and support. For access to our latest corporate information, including overview videos and investor material, I encourage you to visit our website at: www.kinbashainc.com

I look forward to communicating with you again soon.

Sincerely,
Masatoshi Takahama
Chief Executive Officer
Kinbasha Gaming International, Inc.

About Kinbasha Gaming International, Inc.

Based in Hitachi City, Japan, Kinbasha Gaming International, Inc. (OTCQB: KNBA) is a retail gaming company that operates 21 pachinko parlors in the Japanese prefectures of Ibaraki, Tokyo and Chiba. For more than 50 years, the company's retail gaming establishments have offered customers the opportunity to play the games of chance known as pachinko and pachislo. Pachinko is played on a device which resembles a vertical pinball machine and pachislo is played on a machine that resembles a western style slot machine. Pachinko and pachislo are collectively ranked as Japan's largest leisure activity, accounting for approximately $227 billion in annual revenue. For more information on Kinbasha, please visit: www.kinbashainc.com

For comprehensive investor relations material, including fact sheets, multimedia resources, and videos regarding Kinbasha, please follow the appropriate link: Investor Portal, Overview Video and Investor Fact Sheet.

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiaries. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the Company's business and operations; business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

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